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QUANTUM LEAPGary Keller

iiiQuantum Leap ©2016 Keller Williams Realty, Inc. v0316

ACKNOWLEDGMENTSKeller Williams University would like to express heartfelt gratitude to the following individuals who provided the effort, expe-rience, and insight into putting on paper the concepts of this life-changing course by Gary Keller.

Bryon Ellington Gene Rivers Kim Harryman Skye AndersonDanny Thompson Jeffrey Ryder Mary Keith Trawick Tamara HurwitzDick Dillingham Julie Fantechi Owen Gibbs

NOTICESWhile Keller Williams Realty, Inc. (KWRI) has taken due care in the preparation of all course materials, we do not guarantee their accuracy now or in the future. KWRI makes no warranties either expressed or implied with regard to the information and programs presented in the course, or in this manual, and reserves the right to make changes from time to time.

This manual and any course it’s used as a part of may contain hypothetical exercises that are designed to help you understand how Keller Williams calculates profit sharing contributions and distributions under the MORE System, how Keller Williams determines agents’ compensation under the Keller Williams Compensation System, and how other aspects of a Keller Wil-liams Market Center’s financial results are determined and evaluated. Any exercises are entirely hypothetical. They are not intended to enable you to determine how much money you are likely to make as a Keller Williams Licensee or to predict the amount or range of sales or profits your Market Center is likely to achieve. Keller Williams therefore cautions you not to assume that the results of the exercises bear any relation to the financial performance you can expect as a Keller Williams Licensee and not to consider or rely on the results of the exercises in deciding whether to invest in a Keller Williams Market Center. If any part of this notice is unclear, please contact Keller Williams’ legal department.

Materials based on the Recruit-Select-Train-Manage-Motivate™ (RSTMM™) system and the Winning Through Selection™ course have been licensed to Keller Williams Realty, Inc., by Corporate Consulting. KWRI has the exclusive right within the residential real estate industry to market and present material from RSTMM™, Winning Through Selection™, and any deriva-tives owned by or created in cooperation with Corporate Consulting.

Material excerpted from The Millionaire Real Estate Agent appears courtesy of The McGraw-Hill Companies. The Millionaire Real Estate Agent is copyright © 2003–2004 Rellek Publishing Partners, Ltd. All rights reserved.

Copyright Notice

All other materials are copyright © 2016 Keller Williams Realty, Inc. All rights reserved.

No part of this publication and its associated materials may be reproduced or transmitted in any form or by any means with-out the prior permission of Keller Williams Realty, Inc.

ivQuantum Leap ©2016 Keller Williams Realty, Inc. v0316

TABLE OF CONTENTS

INTRODUCTION 1This Is My Life 3

The 4 Productivity Areas of a Wealthy Life 5

LIFE PRODUCTIVITY 9The Three Stages of Life 13

The Three-Phase Approach to Life 15

A Counterbalanced Life 23

The Incredible Magic Formula of Life 27

The Interaction of a Wealthy Person’s Life Discipline Areas 29

Look at it This Way 31

The Dilemma of Desire and Success 33

Building a Life with Great Purpose 35

A Life with a Mission, Vision, Values, Beliefs, and Perspective 41

The Six Keys to Abundance 43

Self-Mastery and Becoming a Black Belt in Life 45

The 80/20 Principle: The Principle of Greatest Leverage 47

Move from “E” to “P” on Your 20% 55

Becoming a Learning-Based Individual 57

Limiting vs. Unlimiting Beliefs 61

The Accountability Cycle 63

Being Aware 65

Plan for Break-Throughs 67

A Wealthy Person’s Six Life Discipline Areas 69

A Wealthy Person’s Five Life Relationships 71

PERSONAL PRODUCTIVITY 73Going Small 75

The Six Lies Between You and Success 77

Everything Matters Equally 79

Multitasking 81

A Disciplined Life 83

Willpower Is Always on Will-Call 85

A Balanced Life 87

vQuantum Leap ©2016 Keller Williams Realty, Inc. v0316

Big Is Bad 89

Goal Setting to the Now 91

The 1-3-5 “G-P-S” Business Plan 93

The 4-1-1 Worksheet 95

A Closer Look 97

Daily To-Do 99

The Focusing Question 101

Time Blocking 103

Accountability 105

Put it All Together 107

BUSINESS PRODUCTIVITY 109Recruit-Train-Manage 111

Cost of Errors Exercise 113

Recruiting 115

What Is “Preferred” Behavior? 117

FINANCIAL PRODUCTIVITY 119The True Purpose of Financial Wealth 121

Wealth Is a State Of Mind 123

The Six Truths About Money 125

The 8 Mythunderstandings Between You and Financial Wealth 127

The 8 Concepts of Personal Money Management 129

Reality Check 131

The Path of Money 133

$100 Invested Every Month 135

Attributes of Investment Options 137

Basic Stock Market Observations 139

The 10 Ways People Keep From Being a Millionaire 141

Real Estate: A Most “Able” Investment 143

A Financial Track to Run On 145

This Is My Life 147

Thank You for Attending This Course! 149

NOTES

viQuantum Leap ©2016 Keller Williams Realty, Inc. v0316

INTRODUCTION

NOTES

2Quantum Leap ©2016 Keller Williams Realty, Inc. v0316


By Gary Keller

I am—I will forever be.

I am of this world—I am beyond this world.

I listen, but sometimes I can’t hear.

I talk, but sometimes no one listens.

I then realize that the secret of life is not in holding on, but in letting go.

I know to be up—I must be down.

To come out—I must go in.

To know life—I must know death.

To know happiness—I must know sadness.

To know joy—I must know sorrow.

I can walk or I can run.

I can sing or I can shout.

THIS IS MY LIFE.

In the constance I can hear the stillness and I now see life for the first time.

I see no beginning—I sense no end.

I know to finish—I must start.

To have yes—I must hear no.

To have wind—I must accept rain.

To live in light—I must also live in darkness.

I surrender my life to life.

I see the contradictions and accept them as wisdom.

THIS IS MY LIFE.

I understand with wisdom comes ignorance.

I understand that with left comes right.

I understand that with above comes below.

I understand that with hills comes dust.

I understand that with knowing just comes more longing.

I see each day as a new beginning while I know it is truly giving way to another old end.

I finally realize that I do not need to bring GOD into my life—but to truly acknowledge GOD is already there.

THIS IS MY LIFE.

It feels like a dream—but I know that it is real.

Time moves fast—but it feels so slow.

At times I think I know everything—then I awaken and realize that I know nothing.

I feel I am—I feel I am becoming.

I don’t know what—I don’t need to know.

I can laugh—I can cry.

I can whisper—I can say nothing.

I can breathe—I can stop.

I have a choice—I have no choice.

THIS IS MY LIFE.

Life holds such promise—life holds no promise.

Life is and I am alive.

I shall be forever alive. In life I live—in death I live, for at a higher place they are the same.

I am not my body—my body is not me.

I am a human being—not a human doing.

I need to be still and be—not be so active and do.

My life becomes more precious as I become—it possibly becomes less meaningful the more I do.

Less is more—more is less.

I have a name—I am a spirit—I have a soul.

THIS IS MY LIFE.

Now my spirit is set free—flying over the life given to me.

All my past is below—all my future is above.

It is nothing—it is everything.

I hear a million voices become one.

I sense a million souls yearning just to become.

Life has lifted me up and GOD has brought me to my knees.

I seek hope—I am hope.

I seek faith—I am faith.

I seek love—I am love.

I seek life—I am life.


From dust I came—to dust I will go.

THIS IS MY LIFE.

THIS IS MY LIFE

NOTES



LIFE PRODUCTIVITY

WHO AM I?

DON’T PASS GO UNTIL

YOU FIGURE THIS OUT.

What am I going to do?

Take who you are and go out and do

something with your career.

It’s addition. We’re not leaving anything behind.

What are we going to do?

Now take that and succeed through

others.

What is my money going to do?

Now take that and succeed through

your money.

PERSONAL PRODUCTIVITY

LIFE MEANING

POTENTIAL

CAREER POTENTIAL

BUSINESS PRODUCTIVITY

FINANCIAL PRODUCTIVITY

POTENTIAL THROUGH OTHERS

POTENTIAL THROUGH

MONEY

After you hire someone you immediately turn around and help them

with steps 1 & 2.

THE 4 PRODUCTIVITY AREAS OF A WEALTHY LIFE

NOTES



LIFE

PERSONAL

PRODUCTIVITY

PRODUCTIVITY

Maximize Your Life-Meaning Potential

Maximize Your Career Potential

1

2

1. MVVBP

2. 6 Keys to Abundance

3. 6 Key Areas of Discipline

4. 5 Key Relationships

1. Goal

2. Plan

3. 4—1—1

4. Time Block

5. Accountability

1 – 3 – 5G – P – S

Step

s

Prio

rities

Go

als

FINANCIALPRODUCTIVITY

Maximize Your Potential Through Money

4

BUSINESSPRODUCTIVITY

Maximize Your Potential Through Others

3

1. Hire

2. Train

3. Manage

1. Set aside money

2. Invest for security first, freedom second

3. Invest in what you know and understand

4. Follow models

5. Hold your money accountable

THE 4 PRODUCTIVITY AREAS OF A WEALTHY LIFE

NOTES


PRODUCTIVITYLIFE1

Quantum Leap ©2016 Keller Williams Realty, Inc. v0316

NOTES

10LIFE PERSONAL BUSINESS FINANCIAL


LIFE PERSONAL BUSINESS FINANCIAL

ARE YOU LEADING?WHOSE LIFE

HOW DO YOU KNOW?


NOTES




TRADITIONAL THINKING

When these periods become more and more isolated from each other,

they begin to look like boxes.

THE RETIREMENT STAGE

THE WORK STAGE

THE EDUCATION STAGE

WE LEARN WE PLAYWE WORKthen then

THE THREE STAGES OF LIFE


NOTES




THE THREE-PHASE APPROACH TO LIFE

Your power begins when you begin to firmly take hold in your mind a vision of flexible lifetime patterns, where you have:

QUANTUM LEAP IS A SET OF TOOLS TO HELP YOU IN BALANCING YOUR LIFE.

Better balancing EACH DAY

Better balancing EACH WEEK

Better balancing EACH MONTH

Better balancing EACH YEAR

Better balancing THROUGHOUT LIFE

WHAT THIS LOOKS LIKE

The goal of Quantum Leap is to help you get rid of the boxes and see learning, working, and playing as essential parts of a whole life—in our youth, in our middle years, and in our mature age—throughout our life.


NOTES




PLAYING

PLAYING

PLAYING

PLAYING

THE THREE OPPORTUNITIES THE THREE PHASES

WORKING

WORKING

WORKING

WORKING

LEARNINGLEARNING

LEARNING

LEARNING



NOTES





PLAY

PLAY PLAY PLAY PLAY PLAY

PLAY

SUN MON TUE WED THU FRI SAT

WORK WORK WORK WORK WORK

LEARN

LEARN LEARN LEARN LEARN LEARN

LEARN


NOTES




YOU ARE IN CHARGE OF YOUR LIFE!

No matter how many forces there may be which seem to influence or even dictate part of your life, there is always that part over which you have control. You can increase that control. If you decide what it is that you want out of your Learning and out of your Working and out of your Playing, you will be infinitely less powerless and “victimizable.” Because you are clear about what it is you want, you will not accept cheap substitutes willingly. You will no longer be vulnerable to being sold a bill of goods by any passing stranger. It is your life. Not hers, or his, or theirs. YOURS.



NOTES




A COUNTERBALANCED LIFE

THESE ARE THE FOCUS OF QUANTUM LEAP!

No clear mission, vision, values, or beliefs to guide our life and serve as a filter for the decisions we face throughout life.

Our power to successfully counterbalance is up against three major obstacles:

No self-mastery at a significant level in the six key discipline areas of our life.

No clear focus on the key relationships that surround and truly shape our life.

1

2

3


NOTES




THE GOAL OF QUANTUM LEAP IS TO HELP US LEAD THE WEALTHIEST LIFE WE POSSIBLY CAN!

A truly wealthy life is an abundant life! It is a life marked with GREAT PLENTY in our key relationships, our key areas of discipline, and in the accomplishment of our personal mission!

WEALTH = ABUNDANCE ABUNDANCE = GREAT PLENTY


NOTES




THE INCREDIBLE MAGIC FORMULA OF LIFE

INSIDE OUTSIDE

FIRST CREATION SECOND CREATION

THOUGHTS

SPIRIT

THINK

AS A MAN THINKETH

IDEAS

BELIEF

WHEN YOU BELIEVE

WHAT YOU SEE (inside)

MIND

WHAT YOU CAN CONCEIVE

DEEDS

IN THE FLESH

GROW RICH

SHALL HE BE

RESULTS

REALITY

YOU’LL SEE IT

WHAT YOU GET (outside)

MATTER

ACHIEVE

becomemanifests

andso

beforebecomes

itis

overyou can

If someone asks you “What’s the matter?”, you can ask “What’s the mind?” In fact, if you want your “matter to matter,” you must “mind your mind.”


NOTES




THE INTERACTION OF A WEALTHY PERSON’S LIFE DISCIPLINE AREAS

KNOWING

THINK

MISSION

ACT

VALUES BELIEFS

PERSPECTIVE

THE WAY YOU SPEND YOUR TIME

VISION

RESULTSDOING

SPIRITUAL

FIRSTCREATION

SECONDCREATION

PHYSICAL

YOUR INSIDE WORLD

FEELING THINKINGBELIEVING

YOUROUTSIDEWORLD

FOCUSINGACTINGDONE

TIME

CHARACTER

ACHIEVEMENT

RELATIONSHIPSHABITS

PERSONAL

YOUR DESTINY

PROFESSIONAL

WHO YOUBECOME

All actions are relevant to history. The issue is that some have positive relevance and some have negative relevance.

What you think determines what you do. What you do determines who you are.

TRUTH:

GREATER TRUTH:


NOTES




LOOK AT IT THIS WAY

YOUR PSYCHOLOGY

YOUR BIOLOGY

YOUR BIOGRAPHY

SPIRITUAL

PSYCHOLOGY

SPIRIT

SOUL

LOVE

THOUGHTS

EMOTIONS

BELIEVING

KNOWING

BODY

RELATIONSHIPS

MONEY

BEHAVIOR

RESULTS

DOING

PHYSICAL

CREATES

CREATES CREATES

BIOLOGY

INSIDE OUTSIDE

YOUR PHYSICAL LIFE IS SIMPLY AUTOBIOGRAPHICAL OF YOUR SPIRITUAL LIFE.

Your physical life is simply autobiographical of your spiritual life.TRUTH:

BEING AND BECOMING


NOTES




THE DILEMMA OF DESIRE AND SUCCESS

COMPLEXITY ABUNDANCE

KNOWDesire to

HAVEDesire to

DODesire to

CHOICES AND PRIORITIES

The slice of each of these pies is a direct function of who you want to be and the choices you make.

TRUTH:


NOTES




BUILDING A LIFE WITH GREAT PURPOSE

Are you an Intentional Individual OR Are you just an Accidental Tourist?

Is the song in your head “My Way” OR Is it just “Dust in the Wind”?

Are you a Determined Determiner OR Are you just a Drifting Drifter?

Are you using your time to make your mark OR Are you just marking time?

Are you a Meaningful Specific OR Are you just a Wandering Generality?

Are you making Time Count OR Are you just Counting Time?

Are you making a Life OR Are you just making a Living?

Is the theme of your life “No Time To Kill” OR Is it just “Killing Time”?

Are you following your own plan OR Are you just a part of somebody else’s?

Are you living a life of purpose OR Are you just living?

QUESTION

QUESTION

QUESTION

QUESTION

QUESTION

QUESTION

QUESTION

QUESTION

QUESTION

QUESTION


NOTES





Our Spiritual and Physical Destinies are connected and together link up to take you to the

highest human experience level possible.

Our fi rst purpose in life is to seek the highest relationship possible with the omnipresent. This is our spiritual destiny.

Our second purpose in life is to bring additional meaning and purpose to our lives and by doing so take our spirituality to an even higher level. This is our physical destiny.

TO BE HUMAN MEANS TO HAVE A CHOICE

1

2


NOTES





People cannot live life to its fullest potential without bringing their own purpose to it.

“Unemployment is a characteristic unique to the human species only. All the other creatures and creations seem to know what they are supposed to be doing.”

KNOW THYSELF

Why you are alive.MISSION

What the world, lives, your life will look like during and after your mission has been accomplished. VISION

What is important to you. What you value.VALUES

What you believe to be true. What rules you will follow.BELIEFS

How you view yourself and your situation at any given moment.PERSPECTIVE

THE FOUNDATION OF A LIFE ON PURPOSE


NOTES




A LIFE WITH A MISSION, VISION, VALUES, BELIEFS, AND PERSPECTIVE

MY PERSONAL MISSION

STATEMENT

MY PERSONAL VISION

STATEMENT

MY VALUES

MY BELIEFS

MY CURRENT PERSPECTIVE


NOTES




THE SIX KEYS TO ABUNDANCE

Commit to the path toward “Self-Mastery” in chosen areas1

Focus on the “20%” that matters most2

Move from “E” to “P” on the 20%3

Make being “Learning Based” the foundation of your Action Plan4

Remove your “Limiting Beliefs”5

Be accountable and live its cycle 6

How do you get to the highest level in life?QUESTION



EXERCISE: MASTER YOURSELF, MASTER ANYTHING ELSE

1. What task or topic would you like to master?

_______________________________________________________________________

_______________________________________________________________________

_______________________________________________________________________

2. What strength(s) do you see in yourself that will assist you in your journey toward mastering this task or topic?

_______________________________________________________________________

_______________________________________________________________________

_______________________________________________________________________

3. What specific obstacle or weakness do you see in yourself that might hinder your journey toward mastering this task or topic?

_______________________________________________________________________

_______________________________________________________________________

_______________________________________________________________________

4. How might you overcome that obstacle or weakness?

_______________________________________________________________________

_______________________________________________________________________

_______________________________________________________________________

Time: 5–7 minutes



SELF-MASTERY AND BECOMING A BLACK BELT IN LIFE

MASTERY

BLACK BELT

SELF-MASTERY

THE DIFFERENCE

SELF

The process of achieving great techniques, skills, and habits that make one a relative master of a chosen subject.

The rating of expertise and competence.

The process of achieving great techniques, skills, and habits that make you a relative master of you.

A white belt at some point knows essentially the same thing as a black belt. The black belt is just further along in the path of mastery.

TO BECOME A BLACK BELT IN LIFE, YOU MUST FOCUS ON THE KEY PRIORITIES THAT YOU HAVE DECIDED MATTER MOST IN YOUR LIFE.

You.

SELF-MASTERY

BLACK BELT


NOTES




THE 80/20 PRINCIPLE: THE PRINCIPLE OF GREATEST LEVERAGE

THE DISCOVERY

THREE ADDITIONAL

FACTS

Vilfredo Pareto (1848-1923), an Italian economist, discovered the pattern underlying the 80/20 Principle in 1897. While studying patterns of wealth and income in nineteenth-century England, Pareto found that most income and wealth went to a minority of people.*

There was a consistent mathematical relationship between the proportion of people as a percentage of the total population and the amount of wealth that this group enjoyed. (80/20, 65/10, 50/5) It was predictably imbalanced.

This imbalance pattern was predictable and consistent at different time periods or in different countries.

In 1949, George K. Zipf, a Harvard professor, discovered the “Principle of Least Effort,” which was a rediscovery and elaboration of Pareto’s principle. Zipf’s principle said that “resources (people, goods, time, skills) tended to arrange themselves so as to minimize work, so that approximately 20%-30% of any resource accounted for 70%-80% of the activity related to that resource.”

When applied to self-mastery, we can restate the “Principle of Least Effort” as the “Principle of Greatest Leverage.”

There is a pattern of predictable imbalance in life. It is called the 80/20 Principle. It is the principle of greatest outcome for time and effort expended.

*The 80/20 Principle by Richard Koch

TRUTH:

1

2

3


NOTES




THE 80/20 PRINCIPLE

NOW THINK ABOUT THIS

EXAMPLES

THE BOTTOM

LINE


In 1963, IBM discovered that about 80% of a computer’s time is spent executing about 20% of the operating code. The company immediately rewrote its operating software to make the most-used 20% very accessible and user friendly, thus making IBM computers more efficient and faster than competitors’ machines for the major applications

In the United States from 1973–1995, average real incomes rose by 36%, yet the comparable figure for the nonsupervisory workers fell by 14%. During the 1980s, all the gains went to the top 20% of earners, and a mind-boggling 64% of the total increase went to the top 1%!

5% of U.S. households own about 75% of the household sector’s equity.

A study of 300 films over an 18-month period found that 4 movies—just 1.3% of the total—earned 80% of the box office revenues! The other 98.7% earned only 20%.

The 80/20 Principle will always reassert itself, unless conscious, consistent, and massive efforts are made and sustained to overcome it. The key is to not try to change it, but to acknowledge it and use it. Leverage is power—your power to effect real change in your life.

The reason you first master the basics is that basics are always the 20%. And it is this 20% that always provides you your greatest leverage.

1

2

3

4


NOTES




IT IS COUNTER INTUITIVE!

THE 80/20 PRINCIPLE


IT SEEMS

THE TRUTH IS

We tend to expect that all causes will have roughly the same significance. That all customers are equally valuable. That every bit of business, every product or service, every employee or staff member, and every dollar of sales revenue is as good as any other. That each day or week or year we spend has the same significance. That all our friends have equal value. That all phone calls or appointments should be treated the same way. That all problems have a large number of causes, so that it is not worth isolating a few key causes. That all opportunities are of roughly equal value, so that we treat them equally.

There seems to be a natural, almost democratic expectation that causes and results are generally equally balanced.

This is naïve and self-defeating. Time and effort, unless focused on the 20% that matters, do not equal powerful results. In fact, there is a huge price you will pay when you do not acknowledge and apply this principle.

This “50/50 Fallacy” is one of the most inaccurate and harmful, as well as the most deeply rooted, of our mental maps. When fully understood, the imbalance between input and output, the disparity between cause and effect will most likely stun you!

SO WHY DO MOST PEOPLE NOT LIVE BY THE 80/20 PRINCIPLE?

IT IS COUNTERINTUITIVE!

Q

A



EXERCISE: WORK IN YOUR 20 PERCENT

1. What are some tasks you perform on a typical day (either professional or personal)?

2. Now list one of your Big Goals (either professional or personal).

_______________________________________________________________________

3. From the numerous tasks you listed above, go back and circle those that are going to help you accomplish your Big Goal.

4. Are you working in your 20 percent? If not, what are the 20 percent activities you need to be doing?

_______________________________________________________________________

_______________________________________________________________________

_______________________________________________________________________

Time: 10 minutes

_________________________________

_________________________________

_________________________________

_________________________________

_________________________________

_________________________________

_________________________________

_________________________________

_________________________________

_________________________________

_________________________________

_________________________________



THE 80/20 PRINCIPLE

20% OF PRODUCTS

PRODUCTS

EFFORT

PROFIT

RESULTS

20% OF ACTIVITIES

80% OF PRODUCTS

80% OF ACTIVITIES

20%

20%

80%

80%

80% OF PROFIT

80% OF RESULTS

20% OF PROFIT

20% OF RESULTS

LOOK AT IT THIS WAY…



EXERCISE: BREAK THROUGH YOUR CEILING

Focus

Write one of your goals (personal or professional).

_______________________________________________________________

What are the 20 percent activities you need to do to accomplish these goals?

_______________________________________________________________

_______________________________________________________________

_______________________________________________________________

1. Find Strategic Options How are you going to do this? Are there different or better ways to do it? What are they?

_______________________________________________________________

_______________________________________________________________

_______________________________________________________________

Look for Models to Follow Is there training you can attend that shows you how to get to where you need to go? Do you have a mentor or know someone who has done it before?

_______________________________________________________________

_______________________________________________________________

_______________________________________________________________

2. Install Systems Are there systems you can install to more efficiently accomplish these activities? What are they?

_______________________________________________________________

_______________________________________________________________

_______________________________________________________________

3. Bring in Accountability How will you measure and track what you’re doing? Who will hold you accountable?

_______________________________________________________________

_______________________________________________________________

_______________________________________________________________

Time: 20 minutes



MOVE FROM “E” TO “P” ON YOUR 20%

THOUGHT: This is in many ways the difference between doing something and mastering it. It could also be the separating difference between amateur and professional or white belt and black belt.

Higher and Higher Levels of Success

And the cycle plays on and on and on

and on …

DisappointmentResignation

Greener Pastures

• Learning Based • Mastery

• Action Focused Training • Consulting

• Focus• Options• Models• Systems• Accountability• Purposeful Style

• Energy and Drive• Excitement and Everywhere• Enthusiastic and Positive Thinking• Ease and Intuition• Effort and Natural Behavior (Personality)• Emotional and Spontaneous• Entrepreneurial Style

THE FUNDAMENTAL CEILING OF ACHIEVEMENT

P

1

2

3 “DOING WHAT COMES NATURALLY”

“DOING WHAT COMES UNNATURALLY”

Higher and Higher Levels of Success

This process is a moment of truth, a decision, and a step. It is not a natural evolution.

TO BECOME A BLACK BELT IN LIFE YOU MUST FIRST COMMIT TO MOVE FROM “E” TO “P”

TRUTH

E


NOTES




WHICH IS TRIVIAL

PURSUITS

WHO IS A LEARNING-BASED INDIVIDUAL?



BECOMING A LEARNING-BASED INDIVIDUAL

Who is a learning-based individual?

An individual who has made the decision to use effective learning as the foundation piece for their action plans to develop their life.

To be a black belt in life, you must become a learning-based individual.

QUESTION

ANSWER

TRUTH

ENLIGHTENMENT PRODUCTIVITY

KNOW FOR DOING’S SAKE

KNOW FOR KNOWING’S

SAKE

HIGHER SELF-ACTUALIZATION

2 BROAD OPTIONS

LEARNING BASED

LEADS TO “KNOW” WHERE

ACTION

“I know what I know and there is more to know.”

IGNORANCE BASED

“I know what I know and I’ll ignore anything else.”

INSIDE OUTSIDE


NOTES




BECOMING A LEARNING-BASED INDIVIDUAL

READ

LECTURE

DISCUSSION

PARTICIPATORY

CASE STUDY

ROLE MODEL

ROLE-PLAY

STRUCTURE EXPERIENCE

PERSONAL PRACTICE

TEACH

“Read this and let’s talk.”

“Let me explain.”

“Let’s talk about this.”

“Let’s talk and get others involved.”

“Let’s see what others have done.”

“Let me show you how to do it.”

“You try it with me working with you.”

“You do it while I’m with you.”

“You go practice it.”

“Go do it and teach it.”

1

2

3

4

5

6

7

8

9

10

THE 10-STEP EXPERIENTIAL LEARNING PROCESS

THE PATH OF MASTERY


NOTES




LIMITING VS. UNLIMITING BELIEFS

EXAMPLES

EXAMPLES

DEFINE

DEFINE

• Self• Environment• Potential

• Self• Environment• Potential

LIMITING BELIEFS

UNLIMITING BELIEFS

For you to appreciate and truly discover your “incredible you,” you’ll need to remove limiting beliefs and focus on unlimiting beliefs.

It is actually more practical and effective at times to identify and remove limiting beliefs than it is to always attempt unlimiting thinking.

TRUTH

IN TRUTH



EXERCISE: THE ACCOUNTABILITY CYCLE

1. Think of an issue or problem you are struggling with right now.

2. Now turn to the person next to you. You have two minutes to complain (be in

“victim” mode) about your problem to that person.

3. Once you are done, it is your partner’s turn to do the same.

4. Now it’s time to accept and own the reality of your issue and take action to

resolve it. Utilizing the “Be Accountable” steps, work through and write down

the necessary approach and actions you can take to resolve this issue or

problem.

BE ACCOUNTABLE

Step 1: Seek reality—What is the issue? How does awareness of the issue lead to its resolution?

Step 2: Acknowledge reality—How does having clarity about the issue lead to its resolution?

Step 3: Own it—Owning the issue empowers you. How will you use energy and focus to resolve the issue?

Step 4: Find solutions—What are the possible solutions for the issue?

Step 5: Get on with it—What are the action steps you can take to achieve the solutions and solve the issue?

1.

2.

3.

4.

5.

Accountability leads to change!



THE ACCOUNTABILITY CYCLE

1

5

2

4

3

3

4

2

5

1

GETS ON WITH IT

FINDS SOLUTIONS

OWNS IT

ACKNOWLEDGES REALITY

SEEKS REALITY

AVOIDS REALITY

FIGHTS REALITY

BLAMES

PERSONAL EXCUSES

WAITS AND HOPES

“OK, let’s do it!”

“What can I do?”

“If it’s to be, it’s up to me!”

“This is the way it is!”

“What’s happening?”

“Asks no questions.”

“That’s not how I see it.”

“If everybody would just do their job!”

“It’s not my job!”

“If it was meant to be, it will happen.”

ACCOUNTABLE CHANGE

LIFE HAPPENS

Action Plan

Mother Nature doesn’t care which

posture you take—reality always shows up!

REALITY SHOWS UP …




Ignorance

Possibilities

Denial

Energy & Focus

Projection

Clarity

Deflection

Awareness

Resignation

VICTIM STATUS QUO

If someone is on the “victim” side of this equation, self-mastery and personal growth are almost impossible.

You can only change what you admit you own.

TRUTH

BIGGER TRUTH


NOTES




BEING AWARE

The Platinum Rule by Dr. Tony Alessandra (1998)

O

I D

S

(OPEN)

1

-9

2

-8

3

-7

4

-6

5

-5

6

-4

7

-3

8

-2

9

-1

1-1-2-3-4-5-6-7-8-9 2 3 4 5 6 7 8 9(INDIRECT) (DIRECT)

(SELF-CONTAINED)

RELATIONSHIPS

TASKS

ACTION/SKILLS

KNOWLEDGE/RESEARCH


NOTES




PLAN FOR BREAK-THROUGHS

CEILING OF ACHIEVEMENT

TIME

AC

HIE

VE

ME

NT

LE

VE

L

NEW LEVELS OF ACHIEVEMENT

TRUTH:

To get to the next level in your life will require a different perspective and a higher level of thinking than the perspective and level of thinking that got you where you are. —Thomas Edison

NEW OR IMPROVED

RELATIONSHIPS

NEW ORMORE EFFECTIVE

HABITS

NEW PERSPECTIVE & HIGHER LEVEL OF THINKING

CURRENT RELATIONSHIPS

CURRENT HABITS

CURRENT LEVEL OF THINKING

SELF-IMAGE

FINANCIAL SPOUSE

MENTORS ANDROLE MODELS LOVE

THE PERSON YOU DETERMINE

WEALTH FOR

TOP 5 FINANCIAL WEALTH DETERMINERS

TOP 25 PROFESSIONAL ALLIED RESOURCES

YOU

BUSINESS KIDS

CAREER PARENTS

PERSONAL SIBLINGS

PHYSICAL RELATIVES

SPIRITUAL FRIENDS &CO-WORKERS

2

3

4

1

56

21

1

14

7

22 23 24 25

2

15

83

16

9 10 11 12 134

17 2019

5

18

4 51 2 3

PERSONAL MISSION, VISION, VALUES, BELIEFS & PERSPECTIVE

CURRENT LEVELS OF: Self-Mastery, 80/20, E to P, Learning Based, Unlimiting Beliefs, Accountability

Increased effort and time WILL NOT create increased success.TRUTH:

Short-term success can exceed your thinking, habits, and relationships; however, long-term success can never exceed your thinking, habits, and relationships.

TRUTH:

HABITS DISCIPLINESThe Reality Habit

The Mindset Habit The Proactivity & Persistent Action Habit

The Authority Habit The Prayer & Meditation Habit

The Thankfulness & Gratefulness Habit

The Nutrition Habit The Exercise Habit

The Stress Management Habit

The Play Time Habit The Pay Time Habit

The Organization Time Habit

The Gross Income Habit The 70/30 Rule Habit

The Value/Accountability Habit

The Unique Ability Habit The Leverage Habit

The New Capacities & Repairs Habit

SELF

SPIRITUAL

PHYSICAL

TIME

MONEY

GROWTH

123456

REIN

VENT AND GROW


NOTES




A WEALTHY PERSON’S SIX LIFE DISCIPLINE AREAS

HABITS DISCIPLINESThe Reality Habit

The Mindset Habit The Proactivity & Persistent Action Habit

The Authority Habit The Prayer & Meditation Habit

The Thankfulness & Gratefulness Habit

The Nutrition Habit The Exercise Habit

The Stress Management Habit

The Play Time Habit The Pay Time Habit

The Organization Time Habit

The Gross Income Habit The 70/30 Rule Habit

The Value/Accountability Habit

The Unique Ability Habit The Leverage Habit

The New Capacities & Repairs Habit

SELF

SPIRITUAL

PHYSICAL

TIME

MONEY

GROWTH

123456YOUR PHYSICAL LIFE IS SIMPLY AUTOBIOGRAPHICAL OSuccess is wanting something and getting it.

Happiness happens on the way to fulfillment.

TRUTH:

DEEPER TRUTH:

PERSONAL MISSION STATEMENT

PERSONAL VISION AND LEGACY STATEMENT

PERSONAL VALUES, BELIEFS AND PERSPECTIVE


NOTES




A WEALTHY PERSON’S FIVE LIFE RELATIONSHIPS

FINANCIAL SPOUSE

MENTORS ANDROLE MODELS LOVE

THE PERSON YOU DETERMINE

WEALTH FOR

TOP 5 FINANCIAL WEALTH DETERMINERS

TOP 25 PROFESSIONAL ALLIED RESOURCES

YOU

BUSINESS KIDS

CAREER PARENTS

PERSONAL SIBLINGS

PHYSICAL RELATIVES

SPIRITUAL FRIENDS &CO-WORKERS

2

3

4

1

56

21

1

14

7

22 23 24 25

2

15

83

16

9 10 11 12 134

17 2019

5

18

4 51 2 3

YOUR PHYSICAL LIFE IS SIMPLY AUTOBIOGRAPHICAL OF YOUR SPIRITUAL LIFE.

You need people more than they need you. No one ever achieves their true maximum potential alone.TRUTH:


NOTES


PRODUCTIVITYPERSONAL2



NOTES



LIFE PERSONAL BUSINESS FINANCIAL75


GOING SMALL

“Going small” is ignoring all the things you could do and doing

what you should do. It’s recognizing that not all things matter

equally and finding the things that matter most. It’s a tighter way

to connect what you do with what you want. It’s realizing that

extraordinary results are directly determined by how narrow you can

make your focus.

Where I’d had huge success, I had narrowed my concentration to one thing, and where my success varied, my focus had too.

If everyone has the same number of hoursin a day, why do some people seem to get so much more done than others?

MY AHA



NOTES





THE SIX LIES BETWEEN YOU AND SUCCESS

Everything Matters Equally

Multitasking

A Disciplined Life

Willpower Is Always on Will-Call

A Balanced Life

Big Is Bad

1

2

3

4

5

6



NOTES





EVERYTHING MATTERS EQUALLYLIE # 1

Not everything matters equally, and success isn’t a game won by whoever does the most. Yet that is exactly how most play it on a daily basis.

Achievers always work from aCLEAR SENSE OF PRIORITY.

The 80/20 Principle says the minority of your effort leads to the majority of your results.

EFFORT

RESULTS

20%

80%

EXTREME PARETO

2520% 20%

5 1



NOTES





MULTITASKINGLIE # 2

In the summer of 2009, Clifford Nass set out on a mission to find out how well so-called multitaskers multitasked.

“I was sure they had some secret ability, but it turns out that high multitaskers are suckers for irrelevancy.”

They were outperformed on every measure. Although they’d convinced themselves and the world that they were great at it, there was just one problem.

“Multitaskers were just lousy at everything.”

– Clifford Nass

INTERRUPTED WORKFLOW

PRIMARY WORK PRIMARY WORKDISTRACTION

PRIMARY WORK

FOCUSED WORKFLOW

SWIT

CH

SWIT

CH

REOR

IENT

REOR

IENT

Start

Start

Finish

Finish

TIME

TIME



NOTES





A DISCIPLINED LIFELIE # 3

We don’t need any more discipline than we already have. We just need to direct and manage it a little better.

The trick to success is to choose the right habit and bring just enough discipline to establish it.

TRUTH:

THE ROLE OF DISCIPLINE IN ACHIEVEMENT

DISC

IPLI

NE

TIME

DAY 66HABIT FORMS



NOTES





WILLPOWER IS ALWAYS ON WILL-CALLLIE # 4

The WILL to SAY YES to what you need to do.

The POWER to SAY NO to everything else.

Good decisions depend on more than just wisdom and common sense.

WILLPOWER

PROPORTION OF FAVORABLE DECISIONS

60%

30%

0%MORNING

BREAKAFTERNOON

BREAKEND OF

DAY



NOTES





A BALANCED LIFELIE # 5

“Imagine life is a game in which you are juggling fi ve balls. The balls are

called work, family, health, friends, and integrity. And you’re keeping

all of them in the air. But one day you fi nally come to understand

that work is a rubber ball. If you drop it, it will bounce back. The other

four balls—family, health, friends, integrity—are made of glass. If you

drop one of these, it will be irrevocably scuffed, nicked, perhaps even

shattered.” – James Patterson, Suzanne’s Diary for Nicholas

WORK-LIFE COUNTERBALANCING

WORK LIFE

“In your professional life, go long and make peace with

the idea that the pursuit of extraordinary results may

require you to be out of balance for long periods.”

– The ONE Thing

“In your personal life, go short and avoid long

periods where you’re out of balance.” –The ONE Thing



NOTES





BIG IS BADLIE # 6

SPAN OF CONTROL

HOW BIG IS YOUR BOX?

TIME & EFFORT

BIG OUTCOME

SMALL OUTCOME

ACTIONS

ACTIONS

WHAT, HOW, & WHO?

WHAT, HOW, & WHO?

TH

INK

ING



NOTES





GOAL SETTING TO THE NOW

How do I develop a goal?

How does all this get done?

How do I stay on track?

How do I develop a plan based upon my goal?

How do I know what to do this month/ week in order to be on target with my plan?

How do I know how to prioritize my actions?

Based upon my MVVBP

Time Blocking

Accountability

1-3-5

4-1-1

Ask the Focusing Question

1

5

6

2

3

4



NOTES





THE 1-3-5 “G-P-S” BUSINESS PLAN

Goal

Priorities to Achieve It

Steps to Achieve Each Priority

1

3

5



NOTES





THE 4-1-1 WORKSHEET



NOTES





A CLOSER LOOK

JOBCATEGORY

GOAL

JOB CATEGORY

GOAL/ACTION

BUSINESS

BUSINESS

PERSONAL FINANCE

PERSONAL FINANCE

PERSONAL

PERSONAL

WEE

K 1

WEE

K 2

WEE

K 3

WEE

K 4

ANNUAL GOALS (GAUGE)

MONTHLY GOALS AND/OR ACTIONS (GAUGES AND/OR LEVERS)

WEEKLY ACTIONS (LEVERS)

What are my “Big Rock” Annual Goals – my 20%

What are my “Big Rock” Monthly Goals and/or Action Steps – my 20%

Category – Action to take to hit monthly goal or action to take to achieve the larger action.

What must I do this week to be on track to achieve my monthly goal?





NOTES





DAILY TO-DO



NOTES





“What’s the ONE Thing I can do, such that by

doing it everything else will be easier or unnecessary?”

THE FOCUSING QUESTION




EXERCISE: TIME BLOCK YOUR 20 PERCENT

1. Earlier you identified some 20 percent activities. Are they on your calendar? Pick

a day. What does that day look like with a 20 percent activity time blocked on it?

TODAY AND EVERY DAY8:00 AM

8:30 AM

9:00 AM

9:30 AM

10:00 AM

10:30 AM

11:00 AM

11:30 AM

Noon

12:30 PM

1:00 PM

1:30 PM

2:00 PM

2:30 PM

3:00 PM

3:30 PM

4:00 PM

4:30 PM

5:00 PM




TIME BLOCKING

7

14

21

28

6

13

20

27

5

12

19

26

4

11

18

25

3

10

17

24

31

2

9

16

23

30

1

8

15

22

29

Play Time

Pay Time

Organization Time

1

2

3



NOTES





ACCOUNTABILITY

What is it?

How do I find it?

1

2



NOTES





PUT IT ALL TOGETHER

4-1-1 Goal Worksheet

Calendar

Task List

Daily To-Do Worksheet

20%

80%

Know your key goals and action steps to achieve them.

Make sure you’ve planned enough time to do all the actions necessary to achieve your 20%.

If time permits, work to get as many key tasks done after your 20% is done.

Create a daily game plan that pulls it all together on one sheet of paper to maximize your focus.



NOTES


PRODUCTIVITYBUSINESS3



NOTES





RECRUIT-TRAIN-MANAGE

RECRUIT

TRAIN MANAGE



NOTES





COST OF ERRORS EXERCISE

1. Think of a real situation—a time when you or someone you worked with made a hiring mistake. Think of an employee who was in place for one year.

2. Use the table below to record what tangible and intangible costs you believe were associated with this bad hire during one year’s time.

3. Be prepared to share your totals with the class.

IT HURTS TO REMEMBER …

TANGIBLE INTANGIBLE

Salary $

Mgmt Time $

Admin Time $

Staff Time $

Facilities/Overhead $

Production $

Clients $

Lawsuits $

Recruiting Cost $

$

Total Annual Costs $

Damaged Reputation $

Loss of Goodwill $

Staff Morale/Turnover $

Manager Morale/Turnover $

Lost/Limited Candidates $

Lost Business $

Lost Productivity $

$

$

$

Total Annual Costs $



NOTES





RECRUITING

Looking backward (references, past job history and performance)

Looking at the present (behavior, knowledge, skills)

Looking at the future (motivation and drive)

The goal of recruiting is to find someone whose next logical step in their career is to take the job.

1

2

3

RECRUITING:

YOU’LL DO THIS BY:



NOTES





WHAT IS “PREFERRED” BEHAVIOR?

Every person has an effortless, natural behavior that we might call their “preferred” behavioral style.

A person will naturally (unconsciously) exhibit this preferred behavior unless they willfully (consciously) alter it.

O

I D

S

(OPEN)

1

-9

2

-8

3

-7

4

-6

5

-5

6

-4

7

-3

8

-2

9

-1

1-1-2-3-4-5-6-7-8-9 2 3 4 5 6 7 8 9(INDIRECT) (DIRECT)

(SELF-CONTAINED)

RELATIONSHIPS

TASKS

ACTION/SKILLS

KNOWLEDGE/RESEARCH



NOTES


PRODUCTIVITYFINANCIAL4



NOTES





A FINANCIALLY WEALTHY PERSON

A FINANCIALLY WEALTHY PERSON

Cash flow and wealth are not the same thing! Cash flow is what you are ultimately after! Wealth without cash flow won’t finance anything!

To finance the material foundation necessary for you to achieve your personal mission for your life.

Someone who has accumulated the wealth that delivers the unearned income (passive) necessary to become self-actualized and achieve their personal life mission.

THE TRUE PURPOSE OF FINANCIAL WEALTH



NOTES





WEALTH IS A STATE OF MIND

The most common mistake we make in life is looking outside of ourselves for what we should find inside.

Success is no exception. Just as the source of true happiness lies within each of us, success also comes from within. Success is the result of a very specific mental attitude.

Call it what you like—the mentality of the rich, an attitude of success, or the prosperity consciousness—financial wealth is the outward manifestation of an inner focus. It is the result of steering thoughts toward a specific financial target.

Genuine wealth is, above all, a state of mind —a mental state that has taken physical form in the lives of the wealthy. You must begin by being rich and wealthy in mind BEFORE you can become financially rich and wealthy in life.

TRUTH:

GREATER TRUTH:

THE TRUTH ABOUT

WEALTH

THE BOTTOM

LINE



NOTES





THE SIX TRUTHS ABOUT MONEY

1

5

2

6

3

4

TRUTH #

TRUTH #

TRUTH #

TRUTH #

TRUTH #

TRUTH #

The key to happiness is not more money. Happiness is happiness. Money is money.

Money will come to you when you are doing the right thing(s).

Whatever your life is about, more money will amplify it. Money won’t change you— it will expose you.

Money has its own rules and disciplines. If you don’t learn them, you are basically financially illiterate.

Lifestyle is style over amount. And style is an art; your personal art of living. You can’t buy style with money. You can’t buy good taste or good decisions with money. You can only buy more with more money.

The LIFE QUEST is to have the best life in the time available to us. It’s not the amount; it’s the value. Money doesn’t buy value as it pertains to the best life possible.



NOTES





THE 8 MYTHUNDERSTANDINGS BETWEEN YOU AND FINANCIAL WEALTH

1MYTH: I don’t need to be an investor—my job will take care of

my financial wealth.

TRUTH: Yes, you do need to be an investor—your job is not your financial wealth.

2MYTH: I don’t want or need to be financially wealthy—I’m

happy with what I have.

TRUTH: You need to open your eyes—you do need and want to be financially wealthy.

3MYTH: It doesn’t matter if I want or need it—I just can’t do it.

TRUTH: You can’t predict what you can or can’t do until you try.

1MYTH: Investing is complicated.

TRUTH: Investing is only as complicated as you make it.

2MYTH: The best investments require knowledge most people

don’t have.

TRUTH: Your best investments will always be in areas you can or already understand.

3MYTH: Investing is risky—I’ll lose money.

TRUTH: Investing, by definition, is not risky.

4MYTH: Successful investors are able to time the market.

TRUTH: In successful investing, the timing finds you.

5MYTH: All the good investments are taken.

TRUTH: Every market has its share of good investments.

3 Personal Myths

5 Investing

Myths



NOTES





THE 8 CONCEPTS OF PERSONAL MONEY MANAGEMENT

As a rule, pay CASH (or cash equivalent) —NO PLASTIC CREDIT!

Purchase protection: – Maximum disability protection – Adequate life insurance – Best health insurance – Adequate home and personal property insurance – Adequate car insurance

Follow a budget—avoid impulse.

Save up, then purchase—don’t let a credit card do your saving for you.

Buy based on “need” first—avoid a “wants” purchasing lifestyle.

Think “repair” first—“replace” second —and “new” last.

Pay yourself first—not last.

Tithe.

1

2

3

4

5

6

7

8



NOTES





REALITY CHECK

QUESTION:

At $100,000 annual income

– $30,000 income taxes

= $70,000

– $30,000 invest

$40,000 to live

$30,000 x 10 years = $300,000

x 20 = $600,000

x 40 = $1.2M

x 80 = $2.4M

$60,000 x 40 years = $2.4M

$120,000 x 20 years = $2.4M

$240,000 x 10 years = $2.4M

GOAL = $100,000/YEAR PASSIVE INCOME AFTER TAXES!

WHAT IS YOUR AHA?

$1,000,000 @ 4.0% (TAX FREE) = $40,000/YEAR

$2,500,000 @ 4.0% (TAX FREE) = $100,000/YEAR



NOTES





THE PATH OF MONEY

FOUR CHOICES FOR CASH FLOW

TWO KINDS OF CAPITAL

TWO BASIC INVESTMENT CHOICES

TWO BASIC POSITIONS

HUMAN CAPITALYou Work for Money

CASH FLOW

SPEND SAVE

ACTIVEPASSIVE

DONATE INVEST

OWN

FINANCIAL RETURNS

LEND

CAPITAL ASSETSYour Money Works for You

LEND• Owner Financing• Private Lending

LEND• Money Markets• CDs• Bonds• T-Bills

OWN• Businesses• Real Estate

OWN• Stocks• REITs• Mutual Funds

YOU CONTROL ITTHEY CONTROL IT

4

5

3

2

1

1

1

1

1

2

2

3

2

2

4



NOTES





$100 INVESTED EVERY MONTH

YRS 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20%1 1,200 1,213 1,226 1,240 1,253 1,267 1,281 1,295 1,309 1,324 1,338

2 2,400 2,451 2,503 2,556 2,611 2,667 2,724 2,783 2,844 2,906 2,970

3 3,600 3,713 3,831 3,953 4,081 4,213 4,351 4,494 4,643 4,799 4,960

4 4,000 5,001 5,213 5,437 5,673 5,921 6,183 6,460 6,752 7,061 7,387

5 6,000 6,315 6,652 7,012 7,397 7,808 8,249 8,720 9,225 9,766 10,345

6 7,200 7,656 8,149 8,684 9,264 9,893 10,576 11,317 12,123 13,000 13,953

7 8,400 9,023 9,708 10,459 11,286 12,196 13,198 14,303 15,521 16,867 18,353

8 9,600 10,419 11,329 12,344 13,476 14,740 16,153 17,733 19,504 21,490 23,718

9 10,000 11,842 13,017 14,345 15,848 17,550 19,482 21,677 24,174 27,017 30,259

10 12,000 13,294 14,774 16,470 18,417 20,655 23,234 26,209 29,647 33,626 38,236

15 18,000 21,006 24,691 29,227 34,835 41,792 50,458 61,285 74,858 91,921 113,429

20 24,000 29,529 36,800 46,435 59,259 76,570 99,915 131,635 174,946 234,349 316,148

25 30,000 38,947 51,504 69,646 95,734 133,789 189,764 272,728 396,522 582,331 862,671

30 36,000 49,355 69,636 100,954 150,030 227,933 352,991 555,706 887,048 1,432,529 2,336,080

INTEREST RATES COMPOUNDED MONTHLY



NOTES





ATTRIBUTES OF INVESTMENT OPTIONS

This table shows the major attractions and trade-offs generally associated with a wide range of investments. As in golf, you’ve got to reach for the right club if you hope to get the right results. The table assumes you’re going to buy and hold your investments and not seek capital appreciation through trading.

X = generally acceptable

Z = depends on specific choices in this category

Investments

Lending Investments

U.S. Treasury Securities X X X X

Federal Agency Securities X X X Z

Certificates of Deposit X X Z

Money Market Funds X X X Z

Corporate Bonds X X Z X

High Yield Bonds X X X X

Convertible Bonds X X Z X

Municipal Bonds Z X Z X X

Zero Coupon Bonds X X X Z

Mortgage-Backed Securities X X X X

International Bonds Z Z X Z

Owning Investments

Preferred Stocks X X Z X

Common Stock Z Z Z X X X

Real Estate Z Z X X

Gold and Silver X X X

Collectibles X X

Commodity Futures X X

Major AttributesOther Attributes

Income Growth Potential Security of Principal

High Level Security of Income Short-term Long-term Secure At Risk Liquidity Tax

Advantages



NOTES





BASIC STOCK MARKET OBSERVATIONS

U.S. small stocks provided the highest return (12.1%) and largest increase in wealth ($16,055) during the time period 1926-2010. Fixed-income investments provided only a fraction of the growth provided by stocks. See chart.(Source: 2011 Index Chart Speaker Notes, Morningstar)

A 2010 end of year article reports that the U.S. stocks have been on a tear since the 2008 stock market crash and as of the end of 2010, were only 4.4 percent behind the record 2007 year-end close, and 10.0 percent below the all-time high of the stock market on October 9, 2007. (Source: 2010 Stock Market Returns – The Numbers, “The Irrational Investor, CBS Money Watch, moneywatch.bnet.com/investing/

blog/irrational-investor/2010-stock-market- returns-the-numbers/2478/?tag=col1;blog-river; Accessed September 23, 2011)

Over the long term stocks have been an outstanding investment for two reasons:

1. Stock prices tend, at the very least, to keep pace with inflation. This is because shares of stock represent shares of real things owned and produced by the issuing corporations, and an increase in the price of things is, after all, what is meant by inflation.

2. American corporations have done an excellent job of mobilizing people, technology, and natural resources to create wealth, and stock issued by those corporations appreciates to reflect that wealth creation. One common measure of corporation wealth creation is the statistic known as “return on equity.” “Equity,” in this case, refers to a corporation’s net worth; “return” is profit. The average annual return on equity of American corporations over the last seventy years or so has been about 10 percent. It is no coincidence that on average the stock of those corporations has appreciated at about the same rate.

There are two broad reasons how people can lose money in the stock market: they can lose if they buy the wrong stock, or if they buy or sell the right stock at the wrong time.

The fundamental reason why people lose money in the stock market is that they tend to forget why they’re there. You should enter the stock market for one reason only—to associate your capital with wealth-creating enterprises.

U.S. Small Stock Return Index 16,055 12.1

S&P 500® Total Return Index 2,982 9.9

Balanced Portfolio 1,256 8.8

World Stock Markets

ex-U.S. Total Return Index 809 8.2

Long-Term Government Bonds 93 5.5

5-Year Fixed-Term Investments 56 4.8

30-Day Treasury Bills 21 3.6

Inflation 12 3.0

Ending Wealth

Value ($)

Compound Annual

Return (%)GROWTH OF $1 (1926-2010)



NOTES





THE 10 WAYS PEOPLE KEEP FROM BEING A MILLIONAIRE

THEY NEED TO VISIT THEIR CAPITAL

They don’t trust that the assets their “wealth” is in will hold its value.1

THE LACK OF TRUST IN “PAPER” WEALTH

They think that paper “asset” wealth feels false. They don’t trust the asset to hold its value so they “sell” when they think the timing is right vs. “buy right” and hold forever.

2

THE LACK OF PROPER BALANCE BETWEEN “PAPER WEALTH AND “CASH FLOW”

They get caught up in building wealth on paper and ignore the need to counterbalance with cash flow.3

THE URGE TO BE LIQUIDThey think “cash” is real and everything else isn’t “as real.” So, they have a constant need to convert all assets to cash at some point.

4

THE OVERUSE OR IMPROPER USE OF DEBT

The weight of debt causes them to want to pay it off, and without sufficient cash flow they see “selling assets” as the only means to pay off the debt.

5

THE NEED/URGE TO LIVE HIGH ON THE HOG BEFORE THEIR CASH FLOW CAN SUPPORT THEM THAT WAY

The high cost of living causes them to need to liquidate regularly to cash in tomorrow’s future earnings potential so they can live high today.

6

THE LACK OF SEEING PEOPLE AS A REAL INVESTMENT

They don’t see people as an opportunity to invest in. They don’t understand that the greatest return on investment is usually when money and time are invested in people.

7

DON’T HAVE A WRITTEN-DOWN WEALTH BUILDING PLAN THEY TRUST

They “got” rich instead of purposely building wealth, so they actually don’t know how to duplicate what caused them to get “rich.”

8

THEY SPEND MORE THAN THEY MAKE OR THEY SPEND ALL THEY MAKE

This is a no-win situation. Either way, no money is available to invest since they must spend all of their money trying to play catch-up.

9

THEY DON’T STUDY MONEY OR THE RULES OF INVESTING

They don’t realize that, just like anything else, money has its own rules. Understanding the rules isn’t complicated, but it does take a committed effort to learn.

10



NOTES





REAL ESTATE: A MOST “ABLE” INVESTMENT

ACCESSIBLE

APPRECIABLE

LEVERAGEABLE

RENTABLE

IMPROVABLE

DEDUCTIBLE/ DEPRECIABLE/ DEFERRABLE

STABLE

LIVEABLE

Anyone can buy it

Increases in value over time

Buy on margin and borrow against equity

Cash flow! Cash flow! Cash flow!

Sweat equity

Great tax benefits

Slow to rise and slow to fall

Shelter in more ways than one ...

1

2

3

4

5

6

7

8From The Millionaire Real Estate Investor



NOTES





A FINANCIAL TRACK TO RUN ON

1. Do entity planning for creditor protection (if necessary).• Form family partnership.• Partition income between husband and wife (and possibly, children).

2. Put cash needed to live in checking account.• Put remaining cash, real estate, mutual funds, stocks, etc., in family

partnership and push down into LLCs, etc.3. Create appropriate trusts and wills that fit your age, goals, etc.

STEP ONE: ESTABLISH A BASE CAMP

STEP THREE: PROTECT THE FUTURE

STEP TWO: FUND THE FUTURE

STEP FOUR: THE FUTURE IS NOW!

1. Create a personal budget.2. Try to avoid debt. Don’t finance personal lifestyle.3. Save 3–6 months of living expenses as an emergency fund in staggered CDs.4. Purchase protection:

• Maximum disability protection• Adequate life insurance• Best health insurance

5. Purchase home and work to own free and clear.

1. Create an asset allocation philosophy that fits your age and risk aversion.2. Set up a qualified 401(k) plan, IRA…and invest in mutual funds/ REITS.3. Invest in mutual funds/REITS.4. Invest in privately held: (1) businesses, (2) real estate.5. Invest for children’s college fund.

1. Continue investing in your portfolio.2. Purchase your dream home and/or a vacation home.3. Begin gifting to your children.4. Begin donating to charities, etc.

NOTES



By Gary Keller


I am of this world—I am beyond this world.

I listen, but sometimes I can’t hear.

I talk, but sometimes no one listens.

I then realize that the secret of life is not in holding on, but in letting go.

I know to be up—I must be down.

To come out—I must go in.

To know life—I must know death.

To know happiness—I must know sadness.

To know joy—I must know sorrow.

I can walk or I can run.

I can sing or I can shout.

THIS IS MY LIFE.

In the constance I can hear the stillness and I now see life for the first time.

I see no beginning—I sense no end.

I know to finish—I must start.

To have yes—I must hear no.

To have wind—I must accept rain.

To live in light—I must also live in darkness.

I surrender my life to life.

I see the contradictions and accept them as wisdom.

THIS IS MY LIFE.

I understand with wisdom comes ignorance.

I understand that with left comes right.

I understand that with above comes below.

I understand that with hills comes dust.

I understand that with knowing just comes more longing.

I see each day as a new beginning while I know it is truly giving way to another old end.

I finally realize that I do not need to bring GOD into my life—but to truly acknowledge GOD is already there.

THIS IS MY LIFE.

It feels like a dream—but I know that it is real.

Time moves fast—but it feels so slow.

At times I think I know everything—then I awaken and realize that I know nothing.

I feel I am—I feel I am becoming.

I don’t know what—I don’t need to know.

I can laugh—I can cry.

I can whisper—I can say nothing.

I can breathe—I can stop.

I have a choice—I have no choice.

THIS IS MY LIFE.

Life holds such promise—life holds no promise.

Life is and I am alive.

I shall be forever alive. In life I live—in death I live, for at a higher place they are the same.

I am not my body—my body is not me.

I am a human being—not a human doing.

I need to be still and be—not be so active and do.

My life becomes more precious as I become—it possibly becomes less meaningful the more I do.

Less is more—more is less.

I have a name—I am a spirit—I have a soul.

THIS IS MY LIFE.

Now my spirit is set free—flying over the life given to me.

All my past is below—all my future is above.

It is nothing—it is everything.

I hear a million voices become one.

I sense a million souls yearning just to become.

Life has lifted me up and GOD has brought me to my knees.

I seek hope—I am hope.

I seek faith—I am faith.

I seek love—I am love.

I seek life—I am life.


From dust I came—to dust I will go.

THIS IS MY LIFE.

THIS IS MY LIFE

NOTES



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